Selecting an Attorney
Starting and growing a small business involves wearing many hats—from marketer and sales manager to bookkeeper and HR director. But one role you should never try to fill yourself without the right expertise is that of legal counsel. The legal landscape for small businesses is complex, and mistakes can be costly. Whether you are forming a new business, drafting contracts, navigating labor laws, or facing litigation, having the right attorney can make or break your venture.
This comprehensive guide will walk you through everything you need to know about choosing a small business attorney, including when you need one, what kind of lawyer to look for, how to vet candidates, and how to build a long-term, cost-effective relationship that benefits your business at every stage.
Chapter 1: Why Every Small Business Needs an Attorney
1.1 Preventing Problems Before They Start
Most legal issues that cripple small businesses could have been prevented with timely advice from a competent attorney. From selecting the right business structure to crafting strong contracts and protecting intellectual property, proactive legal planning saves time and money.
1.2 Navigating Compliance and Regulation
Every industry has its own web of regulations—some federal, some state, and others local. An attorney helps you stay compliant with employment laws, environmental regulations, tax codes, and industry-specific rules.
1.3 Managing Risk
An experienced business attorney doesn’t just solve problems—they help you anticipate and reduce the legal risks that come with growth, hiring, expansion, and partnerships.
1.4 Representation in Disputes
If you’re ever sued—or if you need to enforce your own rights—a lawyer ensures your interests are protected. Litigation is costly, and having a trusted attorney from the outset can significantly improve outcomes.
Chapter 2: When to Hire an Attorney
2.1 Formation and Startup Phase
When launching your business, you’ll need legal help deciding whether to form a sole proprietorship, LLC, S-Corp, or C-Corp. Each has different implications for liability, taxation, and operational flexibility.
2.2 Drafting or Reviewing Contracts
Every vendor agreement, lease, partnership agreement, and employment contract your business enters into has legal implications. An attorney can draft, review, and negotiate these documents to your advantage.
2.3 Hiring Employees
Employment law is one of the trickiest areas for small businesses. A lawyer ensures your hiring practices, employee handbooks, and termination procedures comply with local and federal laws.
2.4 Intellectual Property Protection
If your business has a unique product, brand, or technology, legal protection through patents, trademarks, and copyrights is crucial.
2.5 Compliance Audits
As you grow, routine legal checkups ensure you’re not inadvertently breaking laws—especially in areas like taxes, zoning, data privacy, and ADA compliance.
2.6 Business Sales, Mergers, or Acquisitions
If you’re buying another company, selling yours, or taking on investors, legal guidance is essential in structuring the deal, conducting due diligence, and drafting legal documents.
Chapter 3: What Type of Attorney Do You Need?
3.1 General Business Attorney
For most small businesses, a general business attorney is sufficient. They can advise on structure, contracts, compliance, and routine disputes.
3.2 Specialized Attorneys
Depending on your industry or situation, you may also need:
- Employment lawyers – for HR issues
- Intellectual property attorneys – for patents and trademarks
- Tax attorneys – for complex tax strategies
- Litigation attorneys – for lawsuits
- Real estate attorneys – for lease or property issues
- Franchise lawyers – if you’re buying into or selling a franchise
3.3 Law Firms vs. Solo Practitioners
Larger law firms often offer a one-stop shop for various legal needs, but they may come with higher rates. Solo attorneys or small firms often provide more personalized service and flexibility for growing businesses.
Chapter 4: How to Find a Business Attorney
4.1 Start With Referrals
Ask other business owners, especially in your industry, who they use and recommend. Word-of-mouth remains one of the most reliable ways to find trustworthy professionals.
4.2 Use Professional Directories
Sites like Martindale-Hubbell, Avvo, and the American Bar Association’s directory allow you to search by specialty, location, and ratings.
4.3 Local Business Networks
Your Chamber of Commerce, local Small Business Development Center (SBDC), or networking groups often maintain lists of business-friendly attorneys.
4.4 Legal Incubator Programs
If you’re on a tight budget, check out local law school incubators or nonprofit programs that offer affordable legal help to startups and small businesses.
Chapter 5: How to Vet an Attorney
5.1 Check Qualifications and Experience
Ensure your candidate is licensed in your state and has significant experience working with businesses similar to yours. Ask:
- How long have you been practicing business law?
- Do you specialize in working with small businesses?
- Have you handled issues like mine before?
5.2 Understand Their Approach
A good attorney explains the law in plain language and works collaboratively to solve problems. Avoid lawyers who talk down to you or seem focused only on billable hours.
5.3 Evaluate Communication
Timely communication is essential. Ask how the attorney typically communicates with clients, how quickly they respond, and whether they’ll be your main point of contact.
5.4 Ask About Fees Up Front
Transparent pricing is critical. Understand:
- Hourly vs. flat fees
- Retainer agreements
- Billing increments (e.g., 6 minutes vs. 15 minutes)
- What services are included (and excluded)
Chapter 6: Interviewing a Prospective Attorney
6.1 Prepare a List of Questions
During your first consultation, ask:
- Have you worked with clients in my industry?
- What legal issues do you foresee for my business?
- How do you prefer to work with small business clients?
- How do you structure your fees?
6.2 Red Flags to Watch For
Be cautious of attorneys who:
- Guarantee specific outcomes
- Rush you into agreements
- Can’t explain things clearly
- Avoid questions about pricing or experience
6.3 Ask for References
Speak with other clients to get a sense of the attorney’s working style, reliability, and problem-solving skills.
Chapter 7: Understanding Legal Fees and Budgeting
7.1 Types of Billing Structures
- Hourly Billing – Traditional model; costs can vary widely depending on complexity.
- Flat Fees – Common for routine work like business formation or drafting contracts.
- Retainers – An upfront payment that gives you ongoing access to legal services.
- Contingency Fees – Rare in business law; typically used in litigation cases.
7.2 Negotiating Rates
Don’t be afraid to ask about discounts for startups or small businesses, especially for ongoing work or bundled services.
7.3 Budgeting for Legal Services
Make legal fees a line item in your budget. Think of it as an insurance policy against future issues. Skimping on legal costs today can cost much more later.
Chapter 8: Building a Long-Term Relationship
8.1 Treat Your Attorney Like a Partner
Keep your attorney informed about major business decisions. The earlier they’re involved, the more they can help you avoid problems.
8.2 Maintain Clear Communication
Establish expectations around communication frequency, updates, and billing. Schedule regular check-ins, especially as your business grows.
8.3 Review and Update Legal Documents
Set an annual review schedule for contracts, policies, and compliance documents to ensure everything stays current with laws and regulations.
Chapter 9: Alternatives and Online Legal Services
9.1 When Online Platforms Make Sense
Services like LegalZoom or Rocket Lawyer can be useful for basic tasks like:
- LLC formation
- Basic contracts
- Trademark filings
But they don’t replace personalized legal advice for complex issues or disputes.
9.2 Knowing When to Upgrade
Once you hit certain growth milestones—employees, IP concerns, out-of-state business—you’ll benefit from tailored legal guidance.
Chapter 10: Case Studies and Lessons Learned
10.1 Case Study: The Bakery That Didn’t Trademark Its Brand
A local bakery opened to much fanfare but didn’t file a trademark for its name. Two years later, a larger company expanded into their market with the same name and a registered trademark. The bakery had to rebrand, losing goodwill and incurring major costs.
Lesson: A small investment in legal help early on could have protected their identity.
10.2 Case Study: The Contractor Who Used Generic Contracts
A general contractor downloaded a free online contract template. It didn’t include specific payment terms or state-specific clauses. A dispute with a client over payment escalated into a lawsuit he lost due to a weak contract.
Lesson: Contracts should be customized to your business, your jurisdiction, and your industry.
10.3 Case Study: The Retailer Who Delayed Hiring a Lawyer
A small e-commerce retailer hired employees but didn’t set up proper employment policies. After a wrongful termination suit, they spent thousands settling a case that could have been prevented with the right legal foundation.
Lesson: Consult a lawyer before you expand or hire.
Conclusion
Choosing an attorney for your small business is not a one-size-fits-all decision. It requires careful thought, research, and a willingness to treat your legal counsel as an ongoing strategic partner rather than a last resort. With the right attorney, you not only protect yourself from costly mistakes—you also empower your business to grow more confidently and sustainably.
Think of a good business lawyer not as an expense but as a vital investment in the long-term success of your venture.
Quick Checklist: How to Choose a Small Business Attorney
- ✅ Determine your specific legal needs
- ✅ Ask for referrals from other business owners
- ✅ Research attorneys using online directories and reviews
- ✅ Verify credentials and relevant experience
- ✅ Interview several candidates
- ✅ Ask clear questions about pricing
- ✅ Start with a small project to test compatibility
- ✅ Build a long-term working relationship
- ✅ Schedule annual legal reviews